Strategic Trade Policy Framework 2015-18: five exports-oriented sectors suggest measures

Five exports-oriented sectors have made proposals to the government for success of her Strategic Trade Policy Framework 2015-18 urging that the cost of all essential utilities should be reduced to the level of those the competing countries are offering to their industries. "The five exports-oriented sectors should be declared as a separate head of account in gas and electricity tariff structure with a priority in supplies of all utilities to their manufacturing units," Chief Co-ordinator, 5 Exports-Oriented Sectors, Javed Bilwani proposed on Thursday.
He said that if the government aimed to enhance exports to $35 billion till June 30, 2018 as per Strategic Trade Policy Framework 2015-18, it would have to initiate on war-footing basis the bold measures for 30% export increase per annum in a very short time.
"All Custom Rebate Claims should be settled and paid through State Bank of Pakistan at the time of realisation and payment of Export Proceeds. The WWF rate should be reduced to 1 percent (from current 2 percent) for the exporters," he proposed adding: "Exporters fall under final tax regime u/s 143(b) and should be exempted from payment of WHT and be given Exemption Certificates. Deduction of Export Development Fund (EDF) surcharge be stopped at least for the next five years as the Government already has Rs 26 billion funds in its kitty for Export Development."
He further proposed that by easing power crisis, the government should resume Saturdays as a working day. "The government should fix for the export-oriented industries, number of federal gazetted holidays in the year and the workers should not be entitled to the provincial government's holidays and fixed gazetted holidays can be adjusted by Employer and Employee with mutual consent," according to his proposal.
He said that at the present fiscal year, the country's exports are likely to reach $21 billion but that would stay far behind the existing target of $35 billion. Bilwani urged that exports need to be increased by 30% growth every year until June 30, 2018 and with 30 percent growth our export would reach $27 billion in 2016-17 and $35 billion in 2017-18," he estimated, saying that during fiscal year 2015-16 the exports are expected to reach $20.77 billion.
He said that the exporters were still withholding their export orders because they were waiting for enforcement of the zero-rated regime by next July since there were great fears of backlogging of their liquidity under the heads of continuing sales tax. He said that the exporters were compelled to do so.
These long-awaited economic measures specially zero-rating of sales tax - 'No Payment No Refund Regime' for the five exports-oriented sectors including the textile would indeed go a long way to overcome the continuing fall in exports. He said that the government's move would not only help revive ailing SMEs but rejuvenate dead manufacturing units as well.